| Total Loan Amount: | $'+principal.toFixed(2)+' |
| Total Interest Paid: | $'+totalInterest.toFixed(2)+' |
| Total Cost (Loan + Interest): | $'+totalPaid.toFixed(2)+' |
| Maximum Loan Amount: | $'+maxLoan.toFixed(2)+' |
| Down Payment Applied: | $'+v2.toFixed(2)+' |
Calculator Use
The autoloan calculator is a comprehensive tool designed to help car buyers estimate their monthly financial commitments before visiting a dealership. By inputting variables like the vehicle price, interest rate, and loan term, you can visualize the long-term cost of ownership.
Whether you are looking to purchase a brand-new SUV or a pre-owned sedan, understanding the breakdown of your payments—including sales tax and trade-in values—is essential for maintaining a healthy personal budget.
- Vehicle Price
- The total purchase price of the car before any down payments or trade-ins are applied.
- Down Payment / Trade-in
- The amount of cash you pay upfront plus the value assigned to your current vehicle if you are trading it in.
- Interest Rate (APR)
- The Annual Percentage Rate (APR) charged by the lender for the car loan.
- Loan Term
- The duration of the loan, usually expressed in months (e.g., 36, 48, 60, or 72 months).
How It Works
When you use an autoloan calculator, the tool uses the standard amortization formula to calculate the fixed monthly payment. The interest is typically compounded monthly based on the remaining balance of the loan.
PMT = P [ r(1 + r)^n ] / [ (1 + r)^n – 1 ]
- PMT: The monthly payment amount.
- P: The Principal (Vehicle Price – Down Payment + Taxes).
- r: The monthly interest rate (APR divided by 12 months).
- n: The total number of monthly payments.
Calculation Example
Example: You want to buy a car for $30,000 with a $5,000 down payment. The lender offers a 60-month term at a 5% interest rate. There is no sales tax in this example.
Step-by-step solution:
- Loan Principal: $30,000 – $5,000 = $25,000.
- Monthly Interest Rate: 5% / 100 / 12 = 0.004167.
- Number of Months: 60.
- Formula Application: PMT = 25000 [0.004167(1.004167)^60] / [(1.004167)^60 – 1].
- Result: Your monthly payment would be approximately $471.78.
Common Questions
How does the loan term affect my payment?
A shorter loan term (e.g., 36 months) results in higher monthly payments but lower total interest paid over the life of the loan. Conversely, a longer term (e.g., 72 months) lowers the monthly payment but significantly increases the total interest you pay to the lender.
Does the autoloan calculator include sales tax?
Yes, our calculator includes a field for sales tax. In many states, sales tax is calculated on the net price (Vehicle Price minus Trade-in value). The calculator adds this tax to the principal amount to be financed.
What is a good APR for a car loan?
APR varies based on your credit score, the lender, and whether the car is new or used. Generally, a "good" rate is anywhere between 3% and 6% for buyers with excellent credit, while those with lower credit scores may see rates of 10% or higher.